Over the weekend, a reader sent me a question on how I go about finding this to look at in distressed debt land. I may have covered this on the blog tangentially over the past few years, so I thought I would take a stab at it with a summary post.
More often than not, and maybe I am alone in this, ideas kind of fall into my lap. Thinking over the past few months I've spent an inordinate amount of time on MF Global, American Airlines, Jefferies, etc. More specifically, in the past week, all I've really been working on is Petroplus (I have no position one way or the other at this point and will do a post on it later this week). So here is essentially how it went:
- Petroplus bonds down 35% to the high 30s
- Start looking at the bonds
- Thrift conversions
- Busted MLPs